South African banks ARE investing in manufacturing

There has been a perception that local financing institutions are wary of investing in manufacturing related businesses simply because the sector is uncompetitive and there is a limited future in this segment of our economy.

However a quick look at the annual reports for Bidvest Bank and Sasfin suggest that in the last year banks have been taking progressively more risk on these sectors. Finweek picked these two banks because they have to be far more selective about their lending books and have to focus on backing the right entrepreneurs to ensure maximum return from their credit books.

The scary numbers from below are the reluctance to extend credit into the agriculture and construction sectors.

Here is how Sasfin are lending year on year (to the end of June 2012):

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Nedbank 2015 Budget Hub

Despite goals set for tax reforms in retirement funds and social security in Budget 2014, not all of them have been met. Will finance minister Nhlanhla Nene continue the work of his predecessor Pravin Gordhan? Budget 2015 will provide more clarity on government’s future direction.